An empirical study on measuring the effect of layoff on job satisfaction and employee commitment: A case study of detergent producer unit

One of the necessary actions in many organizations is to reduce the number of workers in an attempt to restructure business activities. However, layoff could have negative consequences since many employees may decide to leave since they lose their tolerance. The layoff must be accompanied with some supportive plans to reduce stress among the remaining workers and increase their commitment for long-term work. The present study of this paper considers the effects of layoff on job satisfaction and commitment among the remaining employees of a detergent producer unit. The results indicate that a good supportive program including wage increase, family support, health care plans, etc. could significantly improve employee long-term commitments and it leads to job satisfaction.